Hawaiian Telcom opposes buyout offer - The Business Journal of Milwaukee:

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Sandwich Isles filed a motion earlier this montnh to submit a competing Chapter 11 reorganization plan forHawaiiam Telcom. In it, the Honolulu-based company offere d to buy Hawaiian Telcom’s assets using $250 million in cash and $150 millionn in debt that would be issued byHawaiia Telcom. Until June 30, Hawaiian Telcom has so-callex “exclusivity” in filing a reorganization The company wants to exten that exclusivityto Sept. 30 as it gets votesd on a proposed plan it filedJune 3. Sandwich Islexs has filed an objection to that andHawaiian Telcom’s latest filing defende the request.
“Asking the court for help in promotinga low-ball offer for Hawaiian Telcom’s businesses is not a recipe for succesas in bankruptcy proceedings,” Hawaiian Telcokm said in the filing. Sandwich Isles, a companu founded in 1995 to take advantage of governmentr subsidies that pay for the installation of broadban d cable inrural areas, had said in its motiob that Hawaiian Telcom refused to consider its But, Hawaiian Telcom says it analyzed and rejecter the offer in May, for eight reasonsd listed in the filing.
It cite d Sandwich Isles’ lack of committed financing, lack of federal and statse licenses to operate inurban areas, and lack of experience and abilitg to operate a full-servicd communications company. Hawaiian Telcom said it stands behindf its proposed reorganization plan to reducethe company’s debt by nearlg $790 million, from $1.1 billion to $300 million. Sandwichn Isles’ motion also claims Hawaiian Telcoj has notmade good-faith progress in its bankruptcyy case since filing for Chapter 11 protection in In defending that Hawaiian Telcom’s chief operating officer Kevin Nystrom said the companuy has contacted “dozens of strategixc and financial purchasers.
” The company said it pursued a potential buyer, whom it did not identify, but that aftere two months of talks no offer was made. Nystrom said Hawaiia n Telcom also askedits “equity sponsor” -- its majority of Washington, D.C. -- about a standalone reorganization and also discussed standalone restructuring options with its bondholderds andsecured lenders.